(Reuters) - Australia's Woodside Energy ( WDS ) said on Thursday it had entered into a deal with Chevron ( CVX ) to exchange stakes in a number of energy projects, with the U.S. oil and gas giant making a cash payment of up to $400 million to Woodside.

Under the terms of the deal, Woodside will acquire Chevron's ( CVX ) stake in the North West Shelf (NWS) Project, the NWS Oil Project and the Angel Carbon Capture and Storage Project, all located in Western Australia.

Woodside said it will transfer all its interest in the Wheatstone and Julimar-Brunello Projects to Chevron ( CVX ).

"This transaction simplifies our portfolio, improving our focus and efficiency by consolidating our position in our operated LNG assets," said Woodside CEO Meg O'Neill.

The transaction is expected to close in 2026, the company said.